Why the dividend investor may take a look at NYSE:WST.

Last update: Apr 12, 2024

WEST PHARMACEUTICAL SERVICES (NYSE:WST) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:WST scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Dividend Examination for NYSE:WST

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:WST scores a 7 out of 10:

WST's Dividend Yield is rather good when compared to the industry average which is at 0.66. WST pays more dividend than 86.21% of the companies in the same industry.
The dividend of WST is nicely growing with an annual growth rate of 6.31%!
WST has paid a dividend for at least 10 years, which is a reliable track record.
WST has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
WST pays out 9.61% of its income as dividend. This is a sustainable payout ratio.
The dividend of WST is growing, but earnings are growing more, so the dividend growth is sustainable.

How We Gauge Health for NYSE:WST

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:WST has earned a 8 out of 10:

An Altman-Z score of 21.01 indicates that WST is not in any danger for bankruptcy at the moment.
WST's Altman-Z score of 21.01 is amongst the best of the industry. WST outperforms 100.00% of its industry peers.
WST has a debt to FCF ratio of 0.50. This is a very positive value and a sign of high solvency as it would only need 0.50 years to pay back of all of its debts.
The Debt to FCF ratio of WST (0.50) is better than 93.10% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that WST is not too dependend on debt financing.
WST has a Debt to Equity ratio of 0.03. This is in the better half of the industry: WST outperforms 65.52% of its industry peers.
A Current Ratio of 2.88 indicates that WST has no problem at all paying its short term obligations.
A Quick Ratio of 2.24 indicates that WST has no problem at all paying its short term obligations.

What does the Profitability looks like for NYSE:WST

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:WST has earned a 8 out of 10:

Looking at the Return On Assets, with a value of 15.50%, WST belongs to the top of the industry, outperforming 94.83% of the companies in the same industry.
WST's Return On Equity of 20.60% is amongst the best of the industry. WST outperforms 93.10% of its industry peers.
With an excellent Return On Invested Capital value of 18.40%, WST belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WST is significantly above the industry average of 10.07%.
WST has a Profit Margin of 20.12%. This is amongst the best in the industry. WST outperforms 94.83% of its industry peers.
In the last couple of years the Profit Margin of WST has grown nicely.
With an excellent Operating Margin value of 23.90%, WST belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
WST's Operating Margin has improved in the last couple of years.
WST's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of WST for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.